Categories

October 31, 2016

The IRS recently released updated limits for retirement plans. Our summary of those limits (along with the limits from the last few years) is below.

Type of Limitation

2017

2016

2015

2014

Elective Deferrals (401(k), 403(b), 457(b)(2) and 457(c)(1))

$18,000

$18,000

$18,000

$17,500

Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans (457(b)(3) and 402(g) provide separate catch-up rules to be considered as appropriate)

$6,000

$6,000

$6,000

$5,500

SIMPLE 401(k) or regular SIMPLE plans, Catch-Up Deferrals

$3,000

$3,000

$3,000

$2,500

415 limit for Defined Benefit Plans

$215,000

$210,000

$210,000

$210,000

415 limit for Defined Contribution Plans

$54,000

$53,000

$53,000

$52,000

Annual Compensation Limit

$270,000

$265,000

$265,000

$260,000

Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993

$400,000

$395,000

$395,000

$385,000

Highly Compensated Employee 414(q)(1)(B)

$120,000

$120,000

$120,000

$115,000

Key employee in top heavy plan (officer)

$175,000

$170,000

$170,000

$170,000

SIMPLE Salary Deferral

$12,500

$12,500

$12,500

$12,000

Tax Credit ESOP Maximum balance

$1,080,000

$1,070,000

$1,070,000

$1,050,000

Amount for Lengthening of 5-Year ESOP Period

$215,000

$210,000

$210,000

$210,000

Taxable Wage Base

$127,200

$118,500

$118,500

$117,000

FICA Tax for employees and employers

7.65%

7.65%

7.65%

7.65%

Social Security Tax for employees

6.2%

6.2%

6.2%

6.2%

Social Security Tax for employers

6.2%

6.2%

6.2%

6.2%

Medicare Tax for employers and employees

1.45%

1.45%

1.45%

1.45%

Additional Medicare Tax*

.9% of comp >$200,000

.9% of comp >$200,000

.9% of comp > $200,000

.9% of comp > $200,000

*For taxable years beginning after 12/31/12, an employer must withhold Additional Medicare Tax on wages or compensation paid to an employee in excess of $200,000 in a calendar year for single/head of household filing status ($250,000 for married filing jointly).

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